Anchoring Plastics as the Foundation of Industry in the EU Clean Industrial Deal
Plastics Europe strongly supports the European Commission's competitiveness and decarbonization agenda and welcomes the Clean Industrial Deal. It outlines important and welcome measures, including initiatives to reduce energy costs, cut red tape and create the market demand needed to incentivize investment in the circular economy.
However, there are ongoing concerns within the European plastics sector about the continued oversight of its essential contribution to Europe's industrial base. Additionally, the Clean Industrial Deal is perceived as lacking the necessary urgency to restore the competitiveness of EU plastics manufacturing and to advance its transition toward net zero and circularity.
Virginia Janssens, Managing Director of Plastics Europe, commented, “The EU is demonstrating the ambitious political leadership necessary to restore its competitiveness, but policymakers cannot afford to continually overlook the essential contribution plastics make to the EU economy, providing essential inputs to strategic EU sectors like automotive, net-zero technologies, healthcare, construction, and defense, or the role they are playing in the transition of these industries.”
“European plastics manufacturing is vital to the future of the EU’s industrial base and broader strategic autonomy. Without urgent action, Europe will become increasingly dependent on imports of plastic resins and finished goods from regions with often less stringent environmental standards.”
The complexity of the European plastics system and long investment cycles mean that investment decisions made in the next two years will determine the speed and success of fulfilling the ambitions set out in the EU’s Green Deal and the Plastics Transition roadmap. The window of opportunity to address competitive challenges and create a more favorable investment climate is rapidly closing.
Janssens added, “Europe has an opportunity to establish the world’s first circular and net zero plastics system. Therefore, we fully support the Clean Industrial Deal’s recognition that competitiveness and sustainability policies must be mutually reinforcing. Our industry cannot deliver on our net zero and circularity ambitions unless we are competitive enough to invest. Sadly, there is a real danger that the competitiveness benefits the Clean Industrial Deal delivers will be realized far too late. Time is not on our side.”
In 2022, Systemiq’s independent ‘ReShaping Plastics’ report on “Pathways to Circular, Climate Neutral Plastics System in Europe” highlighted the need for policymakers, plastics manufacturers, and the downstream value chain to deepen collaboration and activate all up- and down-stream levers urgently.
Janssens continued, “The critical importance, size and complex nature of the European plastics system requires a tailored policy response. We call on the Commission to use its convening power to develop an Action Plan on the future of the European plastics sector, bringing together EU institutions, Member States and all relevant partners in the plastics ecosystem. Additionally, we call for the Commission to ensure that plastics are considered in all sectoral initiatives, innovation funding, and measures to ensure EU supplies of key materials.”
The European plastics sector has urged the Commission to ensure that the ongoing fragmentation of the single market does not undermine the positive measures outlined in the roadmap. Additionally, there is support for the call made by 400 business leaders in Antwerp for Heads of State to take immediate action to implement the Clean Industrial Deal at the national level.
